“Factors determining the success and failure of performance management systems in large organizations in the Indian Manufacturing Sector”

Abstract

Performance management is a managerial activity and system in management relating to
employees’ performance in an organization and their alignment to the organization’s goals and
objectives.India’s manufacturing sector supports the economic development of the country by
generating employment and revenue generation. A successful performance management system is
essential in this sector. This study determines the factors which contribute to success or failure of
performance management system in manufacturing sector through gauging the perception of 153
employees working in five different large manufacturing sector organizations of India (whether
private or public). Large organizations imply that they employ one thousand or more employees
directly on the rolls of the organization. Herein, the analysis shows that using the Key Result Areas
method or KRAs-cum-competency, organization works towards encouraging development and
having meaningful discussion among staff and thereby aligning the needs of individuals and the
organization in enabling in attainment of organizational objectives and results.